Insurance Regulatory and Development Authority (IRDA)
Source: Hindu
GS III: Infrastructure

What is discussed under Insurance Regulatory and Development Authority (IRDA)?

1. Mission and Objective of IRDA
2. Bima Trinity

Why in News?

• To increase the country’s low insurance penetration, the IRDA is developing a new affordable bundled product to:
  • Protect citizens against multiple risks
  • Attempting to speed up claim settlements by linking death registries onto a common industry platform

Insurance Regulatory and Development Authority (IRDA)

• The Insurance Regulatory and Development Authority of India (IRDAI) is a statutory organisation within the Ministry of Finance, Government of India, entrusted with:

  

  • Regulating and licencing the Indian insurance
  • Reinsurance businesses
• The Insurance Regulatory and Development Authority Act, 1999, established it.
• The headquarters of the agency is in Hyderabad, Telangana, where it relocated from Delhi in 2001.
• It is a ten-member committee with a chairman, five full-time and four part-time members nominated by the Indian government.
• The authority is now led by Mr. Debasish Panda, and its full-time members are Mrs. T.L. Alamelu, K. Ganesh, Pournima Gupte, Praveen Kutumbe, and Sujay Banarji.

Mission

• To defend policyholder interests, to regulate, promote, and assure the orderly expansion of the insurance business, and for issues associated with or incidental thereto.

Objective

• Enabling ‘Insurance for All’ by 2047, where:
  • Every person has enough life, health, and property insurance coverage
  • Every company is backed by adequate insurance solutions
  • Making the Indian insurance market more internationally appealing
• Making insurance “available, affordable, and accessible” to people through a ‘Gram Sabha-to-district-to-state-level’ method.
• These improvements have the potential to quadruple the number of employment in the industry to 1.2 crore.

• The IRDA recognised the large gaps in insurance coverage that exist in a variety of industries, including life, health, motor, property, and agriculture.
• Through their Bima Trinity strategy, which involves partnership with general and life insurance businesses, they are attempting to create a revolutionary ‘UPI-like moment’ in the insurance market.
• This holistic strategy seeks to provide individuals with a packaged insurance solution that tackles different risks while being affordable and accessible.

Bima Sugam

• A single platform called Bima Sugam will unite insurers and distributors under the Bima Trinity plan, expediting the insurance process and establishing a one-stop shop for clients.
• Policyholders can use this platform to easily seek services and settle disputes.

Bima Vistar

• The creation of Bima Vistar, a complete risk cover packaged solution, intends to speed up claim settlements.
• Bima Vistar offers speedier claim payouts using parametric triggers that eliminate the need for surveyors, guaranteeing that specified benefits are swiftly deposited to the policyholder’s bank account.

Bima Vaahak

• The IRDA envisions a women-centric workforce of Bima Vaahaks (carriers) in each Gramme Sabha who will meet with the female heads of each household to persuade them that a composite insurance product like Bima Vistar can come in handy if there is any distress.

• To meet the aim of giving insurance coverage to everyone by 2047, the IRDA is: 
  • Exploring the development of state-level insurance panels similar to those found in the banking industry.
    • These committees will work with state governments to develop district-level strategies to provide localised insurance solutions that meet the different requirements of the community. 
  • Proposing changes to insurance regulations that would allow insurers to provide value-added services in addition to their policies.
    • These modifications are intended to make insurance more desirable by including other perks like as gym or yoga memberships and nursing services for remote parents.

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